Appeals Office Reminds Attorneys of Case File Access Requirement

Expiration Date: 06/17/2022
Affected IRMs: 8.6.1, 8.24.1

June 17, 2020

MEMORANDUM FOR
APPEALS EMPLOYEES

FROM:
Steven M. Martin
Director, Case and Operations Support

SUBJECT:
Taxpayer First Act (TFA) Access to Case Files

This memorandum provides interim guidance in accordance with the "Taxpayer First Act (TFA) Access to Case Files” provisions. Effective July 1, 2020, employees are required to provide certain “specified” taxpayers who have conferences scheduled on or after July 1, 2020, access to the nonprivileged portions of their case files regarding the disputed issues. Please ensure that this information is distributed to all affected employees within your organization.

Purpose: The purpose of this memorandum is to ensure employees are aware of the requirement to provide “specified” taxpayers with conferences scheduled on or after July 1, 2020, access to the nonprivileged portions of the case file per Internal Revenue Code (IRC) Section 7803(e)(7). This access is only for documents related to the disputed issues and does not include access to documents which the taxpayer has previously provided to the IRS. Appeals Technical Employees (ATE) are to provide taxpayers with access to documents no later than 10 days before the date of such conference. For an expedited conference, the ATE will ensure access no later than the date of such conference.

Background/Source(s) of Authority: The Taxpayer First Act was signed into law on July 1, 2019. The Act amended IRC Section 7803 and made several changes affecting Appeals. A significant change made by the Act gave Appeals one year to develop a process for providing taxpayers access to the administrative case file received from Compliance. This "access to case files” requirement applies to "specified” taxpayers as described in IRC Section 7803(e)(7)(C).

Effective Date/Effect on Other Documents: This guidance is effective on July 1, 2020, and will be incorporated into the affected IRMs within two years from the date of issuance.

Procedural Change: Prior to initial contact to schedule a conference, the ATE will determine if the taxpayer meets the definition of a "specified” taxpayer as defined in IRC Section 7803(e)(7)(C). If yes, the ATE will notify the taxpayer of the right to access the nonprivileged portion of the case file regarding the disputed issues for any conference to be held on or after July 1, 2020. If the taxpayer requests access, the ATE will ensure the requested documents are provided at least 10 days prior to the conference.

The taxpayer's right to access the nonprivileged portion of the case file will be communicated in initial contact letters, initial letters scheduling a conference or initial contact with taxpayers telephonically. The ATE will document whether the taxpayer meets the criteria of a “specified” taxpayer under IRC Section 7803(e)(7)(C). If the taxpayer meets the criteria, the ATE will document the Case Activity Record (CAR) with a new CARATS (Case Activity Record and Automated Timekeeping System) action code indicating that the taxpayer was notified of their right to access the case file. If the taxpayer requests access to the file, the ATE will use a new CARATS action code indicating that the taxpayer requested access to the file.

Additional guidance for Collection Appeals Program (CAP) cases are included at the end of the attachment.

Contact: An internal mailbox has been created for Appeals employees to submit questions pertaining only to the Taxpayer First Act provisions. Questions regarding the Taxpayer First Act may be submitted to: *AP Taxpayer First Act. Appeals employees can also access TFA related documents on the Appeals homepage under the Taxpayer First Act tab.

Attachment: Access to Case File Actions

Distribution:

cc:
www.IRS.gov